FAQs ON HOW FOREIGNERS CAN SET UP A COMPANY IN NIGERIA

Can a foreigner fully own a company in Nigeria?

Yes. Foreigners are now free to set up and fully own a company in Nigeria in several sectors of business with zero or minimal restrictions except for those businesses on the Negative List. Except for some regulated sectors, a foreigner can subscribe to all the shares of a Nigerian company.

Is physical presence of a foreigner required in Nigeria as a condition for company registration?

No. Foreigners can complete the process of incorporation of their Nigerian company and open a corporate bank account without having to be physically present in Nigeria. The entire process for company registration in Nigeria is fully automated and does not require physical presence of shareholders and directors.

What are the requirements for company registration in Nigeria?

The requirements for company registration are as follows:

i. Proposed name of the company;

ii. Registered address in Nigeria (please note that some businesses can be set up with a virtual address whilst some regulated businesses require business premises inspection as a precondition for setting up a business in Nigeria, see for example Digital Lending Business in Lagos State).

iii. The amount of share capital for the company (please note that the minimum share capital for a foreign-owned company is N10 Million);

iv. Company’s email address and phone number (please note that the shareholder’s details can be used for the company where there are no email address and phone number for the company. However, the phone number must be a Nigerian phone number);

v. Details of the shareholders, directors and company secretary (please note that a local director and a company secretary are required in a company with foreign participation).

vi. Certificate of proficiency for some specialised businesses.

How long does it take to complete company registration?

Incorporation of a Nigerian company can be completed in just one (1) day day (24 hours) if all the requirements are completely and properly submitted barring any technical glitches with the digital portal of the Corporate Affairs Commission (“CAC”).

Is there any special requirement for operating a bank account in Nigeria?

The directors of a Nigerian company must obtain a Bank Verification Number (BVN) in order to be able to open and operate a personal or corporate bank account in Nigeria. Interestingly, there are overseas service centres for registering for BVN that foreigners seeking to do business in Nigeria can visit to register for BVN.

The requirements for BVN registration are as follows:

1. Valid ID(any of the following):
   • a) Nigerian International Passport
     b) Nigerian National ID Card
     c) Nigerian Drivers License
     d) International Passport (Non Nigerian)
2. One recent passport photograph
3. BVN Enrolment form which will be provided at the registration center or can be downloaded from here
4. Enrolment fee: See details of fees for each of the registration centers here.
5. Book an appointment at http://apt.oisservices.com/. You will be required to present your appointment slip.

Please note that no company can open a corporate account with a Nigerian bank unless its directors present their BVNs to the bank.